Are Not-For-Profit Organisations ready for NDIS new model?
Over the past three years, and particularly since the NDIS Rollout arrived at all states in Australia, there is a projection of a fundamental change to support the NDIS new model. The new model allows NDIS participants to gain control over the funding without going through disability service providers.
Not-For-Profits Organisations have experienced challenges in adapting with the new NDIS model. They will have to change their fund reception structure from government block grants to individually funded clients. The major concerns of Not-For-Profit organisations are reflected in “NDIS Readiness Report 2016” by BDO Australia.
Key findings of the research consider the uncertainties of Not-For-Profit organisations in adapting with the NDIS change. Concerns regarding standard of service delivery and re-position of “Not-For-Profit” status are mentioned as an evidence of change resistance amongst Not-For-Profit organisations. Technology, financial, and human resource have now become crucial to enhance the “readiness” of these organisations.
In the complex and highly individualised system of NDIS, prominent challenges are identified as long term organisational survival and financial sustainability. It is clear to realise the Not-For-Profit organisations have yet had their strategy to adapt their service scheme and finance reform to serve Australians with disabilities under the new NDIS model.
Where does the learning curve begin?
The market-style NDIS model could influence Not-For-Profit sector to change their fundamental practice. It is foreseeable that some of these Not-For-Profit organisations may find difficulty allocating and maintaining a certain level of resource to sustain in the new environment.
The research identifies the likelihood of shifting from Not-For-Profit to Not-For-Loss of those current organisations. This leads to a question that whether it will be a threat to the current Not-For-Profit organisations. This question is worth to discuss when market competition for service quality and efficiency may occur.
Further, Not-For-Profit providers will have to invest on technology and innovation to provide services under new NDIS model. Staff training and technology upgrading are important to conduct their businesses effectively in the new environment.
The research of BDO Australia motivates not only Not-For-Profit providers but also companies in technology, health case, finance, and accounting industries to develop a change adaptation strategy and achieve sustainability. That is the awareness of the new learning curve that all Australian organisations should begin together with the change of NDIS 2016.
NDIS Readiness 2016 Report by BDO Australia could be found here.